Costing System Assignment

When are companies likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide at least 2 examples from companies in your community for each system (at least 4 companies should be described).

SAMPLE SOLUTION

Costing System
The job costing system involves a situation where all the production costs are accumulated in details and attributed to a group of units. For instance, when dealing with a piece of furniture that is well designed, one would need to account for it using the job costing system. This is an implication that all the labor that has been utilized in making the furniture would have to be recorded and later on compiled in order to fit the specific job (Clavero, 2017). At the same time, the raw materials such a wood that has been used during the construction would have to be accounted for in the long run.
The information collected after the whole process is then utilized when billing or providing the customer with a final cost of the product. The customers get the chance to analyze all the materials used as well as processes that have been performed on the same. The extent or amount of profits made will also be tracked easily using this system….